Shortly after the invasion of Ukraine, sanctions impeded the ability of the Russian central bank to use its international reserves to stabilize the ruble. The Russian central bank would have liked to do this by:   A. selling rubles to buy yuan   B. selling rubles to buy dollars   C. selling other currencies to buy rubles   D. all of these

According to the flow of balance of payment (BOP) approach to exchange rate determination, there are financial measures being put in place by countries with managed floating exchange rate regime in order to cope with a deficit in its BOP.In order to control those countries currency volatility and opt for stabilization what will happen if they run persistent BOP deficits for a couple of years?   T-Mobile., like many emerging telecom carriers, has only limited and infrequent access to domestic debt and equity markets. As a financial management at Ait, how would you be able to demonstrate to the Board of Directors and convince them as to why the Net Present Value and Internal  Rate of Return capital budgeting decision rules sometimes provide different  rank orderings of investment project alternatives?   Equipment that costs $15,000 and generates a $5,000 annual return would appear to "pay back" on the investment in 3 years. If economists expect inflation to rise 30 percent annually, what…

Consider a U.S. firm that deals in only one foreign currency, the peso. Fill in the blanks to describe the economic exposure of the firm to changes in the value of the peso. If the peso depreciates, interest from investments in Mexico will likely investments will If the peso depreciates, the in borrowed funds from Mexico increases However, if the peso appreciates, interest from those decreases on borrowed funds from Mexico However, if the peso appreciates, the interest owed on

Let’s assume the U.S. faces trade-offs between military missiles (MM for Ukraine) and Bridge Repairs (BR in the U.S.). In other words, we are assuming the U.S. can use its scarce, productive resources (land, labor, capital, and entrepreneurship) for the production of military missiles for Ukraine (transfer of resources to Ukraine) or for the repair of bridges in the U.S. (Infrastructure).  We are assuming the amount of resources is given, technology is given, and the U.S. is producing using all of its resources which means there are no unemployed resources.          MU      BR            Trade-Off: To produce an additional missile                                                            for Ukraine, the opportunity cost is the value                                                           of bridge repairs foregone                                                                                                                MUs  :  BRs             0 MUs             140 BRs…